Charleston-area home sales skyrocketed in July, fueled by record-low mortgage rates and pent-up demand.
Residential real estate transactions jumped nearly 32 percent last month compared to the same period a year ago, according to preliminary data released Monday by the Charleston Trident Association of Realtors.
Last month, 2,400 homes changed hands throughout the region at a median price of $305,000, up 9.5 percent or $26,550 from July 2019.
Through the first seven months of the year, 11,576 homes sold at a median price of $290,515. For the year, sales are up 4.8 percent while the price is 4.7 higher.
"The increased number of showings we’ve been tracking since our state’s reopening has translated to a record number of closed sales," said Bobette Fisher, president of the North Charleston association. "The interest and investment in the Charleston market is now surging past even last year’s record-breaking figures."
She predicted falling mortgage interest rates will push more buyers into a broad spectrum of homes.
Home loan financier Freddie Mac reported Thursday the average rate on a 30-year, fixed-rate loan slipped to 2.88 percent, down from 3.60 percent a year ago. The 15-year, fixed rate averaged 2.44 percent, down from 3.05 percent a year ago.
"The resilience of the housing market continues as mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand," said Sam Khater, Freddie Mac’s chief economist.
"We expect rates to stay low and continue to propel the purchase market forward," he said. "However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes."
The number of homes listed as "active" in July in the CHS Regional MLS, formerly the Charleston Trident Multiple Listing Service, stood at 3,890. That's down more than 38 percent from a year earlier.
The housing supply was already low before the pandemic derailed sales last spring, but inventory has been further depressed by health fears among would-be sellers who worry about opening their homes for showings during the outbreak.
With fewer homes on the market and more demand for housing, prices have skyrocketed.
"The past two months of activity have pushed us well into the gains territory for year-to-date sales and median price growth," Fisher said.
“Our challenge continues to be on the supply side of the market — with just over two months of inventory, we are nearly out of housing options that will meet the demand that we continue to see in our region," Fisher noted.
Total showings for the region posted another strong gain in July at 31,202, an increase of 7 percent compared to the same month last year. The areas with the highest number of showings were again concentrated in the western suburbs of Goose Creek and the Summerville area, including Ladson and Ridgeville.
While home prices continue to escalate throughout the Charleston region, property information service CoreLogic predicts they will fall 1 percent nationally by June of next year, marking the first time in nine years home prices are projected to decline.
"Housing market activity stands as a shining light for the U.S. economy and households during these challenging times, and continued demand highlights the importance of housing," said Selma Hepp, deputy chief economist at CoreLogic.
Homes have become a safe and stable place during the current health crisis, she said.
"While recent data show that the current resurgence in COVID-19 cases undermines the sustainability of economic recovery — and may restrain available for-sale homes — home-buying fundamentals driven by demographics and favorable mortgage rates suggest housing demand will remain solid," Hepp said.
The local Realtors group adjusted its sales total for June slightly higher to show 2,058 transactions at an unchanged median price of $288,000.
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Low mortgage rates, demand propel Charleston's July home sales higher - Charleston Post Courier
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